Asian banks are in a relatively better position than European and U.S. banks. Having stayed strong during the credit crisis, Asian banks continue to maintain high Tier 1 Capital Ratios and follow their conservative business models. In addition, state regulators have played a key role in strengthening the banking systems by formulating sound policies and implementing stricter standards on lending. For example, the Monetary Authority of Singapore requires domestic banks to hold a minimum Tier 1 capital adequacy ratio of 6%, which is higher than current Basel II standards. By 2015 the Central Bank will raise the minimum Tier 1 capital adequacy ratio to 8%, which is also higher than the Basel III requirements.
Investors looking to add some bank stocks from Asian countries can consider the following five OTC-traded sponsored ADRs having over 5% dividend yields:
- Bank: Hang Seng Bank Ltd (HSNGY.PK)
Current Dividend Yield: 5.52%
Country: Hong Kong
- Bank: Malayan Banking BHD (MLYBY.PK)
Current Dividend Yield: 6.56%
Country: Malaysia
- Bank: DBS Group Holdings Ltd (DBSDF.PK)
Current Dividend Yield: 8.25%
Country: Singapore
- Bank: United Overseas Bank Ltd (UOVEF.PK)
Current Dividend Yield: 5.79%
Country: Singapore
- Bank: BOC Hong Kong (Holdings) Ltd (BHKLY.PK)
Current Dividend Yield: 6.41%
Country: Hong Kong
Note: Dividend yields noted above are as of market close January 4, 2012.
Disclosure: No positions
